any chance microsoft makes a bid for salesforce? >> no.t doesn't -- it's not going to be eps accretive. the company has guided next year to 51 -- negative 51 to negative 56 cents gap. so there's no way microsoft's going to buy it because of the issue of how it's going to affect their bottom line. in addition, the multiple is very high. and frankly, marc benioff really believes the story. i don't see that he would sell. >> if we've taken out the microsoft takeout premium in this, could you then set up some kind of a trade where you buy microsoft/oracle and sell crm short? >> i could see that happening. i could see microsoft versus salesforce. microsoft is an interesting moment in time. it's a company in which there is organic, major development going on. windows 8, we think, is going to be very interesting to the market. it's going to be a very credible tablet, operating system. we'll hear more about that next week at barcelona. you have them massively moving into the cloud. salesforce has grown to have approximately 100,000 customers as of

of course, everybody here -- heard from the news about salesforce. the area is the headquarters, about two million square feet, housing about 10,000 employees. and then that they want to review the project in 2015. besides, they will not have something else to come in to discuss even more. and the washington has another project coming in, a base isolation building. 201 folsom is a 40-story building. 55 5th street, a school. i think it was mentioned before. and the memorial building with the seismic retrofit also. with this amount of projects, on the pipeline, it is about $180,000 -- we estimate another 100 million again. i have to say that i appreciate the director for listening to me and giving me more staff. to answer commissioner mar's question regarding trying to get the retiree -- because when we get the staff in, we usually have six months to a year to train them to fully utilize them. director day agrees. maybe we want to hire the urgent one. there was the retirement of jeff. is very knowledgeable. right now, we have three. ron, rudy, and davi

it is great to read in the paper about salesforce leasing 300,000 square feet. it is great to hear them leasing 300 million square feet. 400,000 square feet translates into 1000 units of needed campus -- needed housing. 2 million square feet is 5000 units of housing. we have an incredibly difficult problem supplying housing. we need 20,000 units of housing over the next 10 years. at a minimum. more like 30,000 with the growth in jobs if the mayor has his way. this is a very urgent, needed process. i am very optimistic that we will all be able to work together and come up with a program that will deliver housing and affordable housing for san francisco. [applause] mayor lee: let me be it -- let me reiterate by closing that there is no prescribed solution going into this process. we have to be open to everybody's input. i make that commitment that we are going to open ourselves up. there's nothing to say that any idea coming forward cannot be a good one but also be integrated with everybody else's idea. i want to signal that to everyone that is going to participat

clearly state that this program is a direct result of a new public-private partnership between the salesforce foundation and this collaboration between housing authority, human services agency, school districts, and others. merely talks about bringing the private sector in to address critical problems in the city. i want to talk about the school district numbers. i will be working with the school district to better understand what is going on there, the discrepancy between the numbers at the school district in the numbers that exist at hsa. i want to understand why there is a difference in those numbers. more importantly, i want to build a bridge between those kids at the school district in the homeless system of care, a better understanding of how to serve them and get them the help they need. not all are homeless. we want to make sure that they are all aware of the homeless system of care. this is absolutely a big problem in the city, the increase in family homelessness. it is ending we have seen nationwide that is happening, largely a result of this economy and of course the affordable hou

you know who salesforce is. they have been a huge leader in this. even in the whole bay area. you have netsuite. as i said, nearly everyone. i will give you one example, which you all are probably familiar with, which you will think is an odd example, which is opentable. i'm guessing because san francisco is ground zero, right? on the one hand, you see an open table as a consumer application cloud service, right? you go on, reserve restaurant space, right? it is free. the other side is a business application. they are selling to restaurants. software to help them increase the number of people. that has happened really within the past 10 years. as i said, every application. increasingly, what has happened is highly specialized applications. i will give you one example of that. dealer track. they actually do loan origination software for automotive loans. today, basically 80% of all the loans in the united states are processed through their software. we will see much more of this. we want to talk about not as public companies, tons of this. all of these guys uses the original cl

well, lately they have because salesforce has been on a tear, rising 25% so far.ow, salesforce just reported tonight and the company delivered a true blow-out better than expected quarter. it reminded me of the old days. a 3 cents earnings beat off a 40 cents basis with stronger than anticipated revenue that rose 38.3% year-over-year. that's accelerated revenue growth. better, sales force knocked it out of the park in the area where they disappointed last year. deferred revenue. that increased the phenomenon over a year ago leaving the estimates in the dust. okay. people wanted more information from the company last time. they got it. they were wowed about it. there's no comeback, by the way. sales force never left the throne. no one it's big in after hours trading. let's go to the visionary ceo salesforce.com and long one of the show's favorite money makers. to hear about the quarter and what's going on forward, welcome back to "mad money". >> hey, great to be here, jim. it's a gorgeous day in san francisco. >> well, the release that you put out is gorgeous, so l

currently, some of the funds that are being used, along with the salesforce funding is what is knownrp, federal stimulus money. it stands for homeless prevention and rapid rehousing program, which has an ending date of june 30 of this year, 2012. so it will allow us to continue on with providing rental subsidy and homeless prevention funds to our homeless constituents. supervisor chu: thank you very much. you have a sense of what the value of the sale would be? >> from what we have gathered, it is in the $400,000 range. supervisor chu: ok, thank you. supervisor avalos. supervisor avalos: thank you for your presentation. it is great to have funds like this to support homeless services, and i want to thank the family of leila boroughs in that. to follow our financial policies though, this is one-time monies. so are we waiving our financial policies if we are going to be paying for ongoing -- we have to pay for capital and not for ongoing shelter services? >> no, this is not for shelter services. this is for homeless prevention services, which could be paying back-rent, late on electric

salesforce is a terrific cloud-based company, not because they're in the cloud.he way they offer their services in small chunks to the businesses that want to buy that service. >> what do you think of the valuations of the number of listed cloud-related companies? do you feel because of of the the hype and the buzz in the cloud that some of these valuations are being unjustified? >> i think some of them are. but i don't see the kind of extremism that we saw during the dot-com boom where as soon as a company would put out a press release, their stock would shoot up. i don't think we're at that stage. >> where do you see rackspace in this? this is the one i've been focusing on in terms of cloud. in terms of really becoming a significant player in what we would call the real proprietary cloud as, again i say, amazon many people will say is? >> i think rackspace is an interesting player. amazon is clearly the leader in that space. rackspace has a lot of potential. if you look at pure play companies, they're probably the closest pure play cloud company out there right

first, i want to say i am very encouraged to here then is that the salesforce and hsa collaboration. this funding will definitely be infused a need and fulfill a need in san francisco. we're currently looking at the decrease of homeless prevention rapid re-housing dollars that were infused into the city in september 2009, which allow us to serve approximately 128 families. since that time what rental subsidies in move-in support, we're currently in the process of ramping down from the funding, because that funding will end june 2012. so this infusion will definitely allow us to provide additional and continuing subsidies and move-in support for families. i also want to bring up the fact that there is a big shift happening in federal funding that we need to pay attention to. the emergency solutions grant -- the emergency shelter grant is shifting to the emergency solutions brand, which will focus that money on prevention. yeah, at the same time, we continue to need a safety net in san francisco. hamilton family center provides a full circle, from emergency services to subsidies and mo

currently, some of the funds that are being used, along with the salesforce funding is what is known as hprp, federal stimulus money. it stands for homeless prevention and rapid rehousing program, which has an ending date of june 30 of this year, 2012. so it will allow us to continue so it will allow us to continue on with providing rental subsidy

to your point, salesforce, they don't seem to be that interested in buying these larger companies.hat they're doing is they're building capabilities around certain let's say verticals of smaller, largely private companies. that's been their m&a strategy and frankly we have some questions about that as well. they're not providing as much granularity into their performance because of the disparity in some of the businesses they now have. >> we'll leave it there, $120 is the call. scott kesler. we have breaking news, let's go live to john ford, john? >> big news here in tech, simon. cisco basically suing in europe to stop microsoft's acquisition of skype. they say their end goal is not to actually stop the acquisition, but to get europe to attach conditions to it. mainly they want europe to make sure that skype is interoperable with other video calling systems. cisco has several of these itself. its telepresence, tanberg, they want to make sure that various systems are able to talk to each other. microsoft has bought skype and is trying to integrate that consumer product also with its

peter schwartz of salesforce. >> we are delighted to participate in this initiative. we think it is incredibly important. i think you all know we are profoundly committed to san francisco today and into tomorrow. you may have seen some of the first pictures of our new campus, which will be one of the largest construction projects in the city. we need talented people to fill these positions. we are entering by innovation, and innovation is driven by talented people. we need to attract people to the city to fill those buildings. without them, we cannot sustain innovation. it is a loop that continues going in the future. more creative people attract still more creative people. that is what we think this is about. we are delighted that mayor lee will be leading us in this process, of creating the conditions in education, transit, housing, taxes, that enable people to live in the city, wrote in the city, and continue to attract talent. i came here in 1969. i have been here ever since. this is the fourth company i have participated in, and we have great opportunity to grow.

peter schwartz of salesforce. >> we are delighted to participate in this initiative. we think it is incredibly important. i think you all know we are profoundly committed to san francisco today and into tomorrow. you may have seen some of the first pictures of our new campus, which will be one of the largest construction projects in the city. we need talented people to fill these positions. we are entering by innovation, and innovation is driven by talented people. we need to attract people to the city to fill those buildings. without them, we cannot sustain innovation. it is a loop that continues going in the future. more creative people attract still more creative people. that is what we think this is about. we are delighted that mayor lee wi b

salesforce continues to be the market maker with a 400,000 square foot lease signed this past january. let's go back to this linen truck -- lenin -- lemon truck and turning lemons into lemonade. san francisco had a few limits handed to it this past year, but in spite of that, the city continues to show us it knows how to make lemonade -- san francisco had a few lemons. an example -- the america's cup. the events for this well- publicized multimillion-dollar america's cup will be held on san francisco bay starting this summer with the grand finale scheduled for september of next year. the port of san francisco is widely using the america's cup as a catalyst for revitalization of its peers -- piers pierre -- its piers. the $4 billion transbay terminal project is under way with new construction coming under the ground in months. mayor lee, if you think san francisco had lemons this past year, you should talk to mayor quan. here is a lemon. here is another. he is it -- here is an even bigger lemon. it is time to start thinking about making some lemonade. no, required here. here is a more

so i, sitting in starbucks, want to go to -- was just a salesforce that, -- let's just say salesforce.com. whose identity am i doing that under? the whole problem is that security is tighter i'd be. the moment you step out of the enterprise boundary, the identity is up for grabs. so extending the enterprise boundary, extending security, extending the enterprise into the cloud is a major challenge. they have to extend not only identity management, but also all the requirements for security and clients and those sorts of things. so the adoption of various cloud services notwithstanding, it is growing at pace. there are major changes still technologically to get it done. so the enterprise use public clouds as untrustworthy, and reliable, and scary, and yet, every single enterprise employee uses it. on the enterprise client, and all their own. and of 40 walks in with their own network nowadays, and the process enterprise data on the rise, and they probably -- it probably drag it into something like dropbox. tim mentioned an interesting statistic of how many people said they were using cloud.

love six three spent long business over finished paying off with a three second win for the sylvia salesforce a victory set up by only seventy final tie in april against belgium three two although this game uncertainty over whether maria sharapova will be available while the czechs are the defending champions and they beat germany for one to reach the all the semifinal after leading to nil from saturday world number two petra bit of a sealed the victory after coming from a set to beat sabine lisicki and the czechs will next play italy after they beat ukraine three two. now imagine i had missed the chance to move level on points with legal aid as manchester city off to staging a remarkable three goal fight back to draw three straight chelsea in the premier league jonny evans i'm go hard to the players one male after the break but all the draw back in the second half quick goals on one last luis meant chelsea were three goals to the good office fifty minutes but to wayne rooney penalties and right at the end of this they did an astonishing comeback the draw at leeds united training city by two

so i, sitting in starbucks, want to go to -- was just a salesforce that, -- let's just say salesforce.com. whose identity am i doing that under? the whole problem is that security is tighter i'd be. the moment you step out of the enterprise boundary, the identity is up for grabs. so extending the enterprise boundary, extending security, extending the enterprise into the cloud is a major challenge. they have to extend not only identi

. >> what about salesforce? >> stocks are being chatted up today.he second or third day after analysts actually came out last week saying, look, this looks like a strong end to the quarter. i would suspect you would want to pay close attention to the margins on this. there's increased chatter about competition. some people have pointed out it doesn't masse a gaap profit, and there are some issues about that, but -- >> i applaud you for this one. i like the way the stock has acted since oracle added telos. and somebody made a huge profit, i'll just say, from a $6 to a $12 option in two days. that was at the march 125 strike. now they have rolled out to the 135/150 strikes, which nines now they have put even more money on the table, betting this stock goes a lot higher over the next 30 days. >> it will be interesting to watch. after the close rack space, of course i point out less than a quarter of its sales come from what you call cloud. i'll be talking to jon fortt about this, on "closing bell." >> now you have like a developing arms race, right? la

. >> one comment quickly and then i have to go on salesforce. >> sure.is sort of i would say similar to lululemon in that it's a company that's doing well, growing rapidly, but the valuation's just gotten extreme. it's got $17.7 billion market cap and trading at north of eight times sales. just too much optimism built into the stock. >> 30% year-to-date. final trade when we come back. [ leanne ] appliance park has been here since the early 50s. my dad and grandfather spent their whole careers here. [ charlie ] we're the heartbeat of this place, the people on the line. we take pride in what we do. when that refrigerator ships out the door, it's us that work out here. [ michael ] we're on the forefront of revitalizing manufacturing. we're proving that it can be done here, and it can be done well. [ ilona ] i come to ge after the plant i was working at closed after 33 years. ge's giving me the chance to start back over. [ cindy ] there's construction workers everywhere. so what does that mean? it means work. it means work for more people. [ brian ] there's

salesforce is strong in another area. >> microsoft. >> you have to buckle down and think -- >> microsoft- good. as far as the impact it's going to have on microsoft's overall business, that's debatable, but they certainly do have a play there. they're not by any means dominant at this point. amazon has got a stronger play at this point. we'll see where it goes. >> cloud wars, jon, thank you very much for joining us. >> let's get back now to that kodak story as mandy talked about. the company saying it is getting out of the digital camera business. it will focus on its printing solutions. herb, what do you make of this? >> i was surprised -- >> they invented the digital camera. >> i know. i understood but you have to look at what comes next. >> only recently in las vegas at the ces, didn't they just unveil six new cameras? they showed off six new cameras. it almost feels like at that stage they still hadn't got their head around the idea that they're going to have to do this and then the opportunity for chapter 11 on january 19th. so it's all very fresh and very real. still, you feel like

this has been an incredible time for salesforce. >> which brings me to the last point here. gave us unbilled deferred revenue. you have never broken that out before. you are talking about it ending the first year of $2.2 billion up from $1.5 billion. unbilled deferred. what does that mean? >> well, jim, that is what you asked for in the last quarter. >> i'm just -- >> you said -- you said, mark, you have to roll out some more numbers that give us more clarity to the backlog because what happens with sales force.com, of course, you see this incredible revenue growth. i mean, 37% for the year. 38% for the quarter. you see this incredible cash flow number, but these are all deals that we signed, you know, years ago, jim that, are just paying out now, so you wanted more clarity to what happens in the quarter because, you know, that's kind of the nature of the call. okay. what happened in the quarter? we give out a certain number of numbers. you know, like deferred revenue, revenue, cash flow. the numbers i thought was important. but, you know, we want to continue to open up, ope

. >> salesforce, crn.benioff, ceo saying you want my deferred revenue number which is what caused the bears to say this thing is worth much less? his deferred revenue number was so off the charts, it's a good predictor of earnings. it was in the 40s. they were looking to the 30s. the revenues here, $2 billion going to $3 bill yn. i think it will be a $10 billion company. shorts are doing it at their own pearl at this point. >> opening bells are ringing. at the nasdaq, "the new york times" travel show. crm did have a good quarter. i was wondering about guidance. guidance seemed unclear. revenue was ahead of estimates. in terms of the eps number the range they gave, the top end of the range was -- >> i mean, i think they want to -- i think the range -- i don't want to say it's meaningless. the deferred revenue is really the way i calculate earnings per share. if their deferred revenue is as big as it is -- >> let's talk shoes. i know you love to shop. you're a big retail fan. crocs and decker's. >> disappoin